The Hindu Business Line : Concept bags ONGC divestment account

CONCEPT Communication Ltd, an integrated financial communications agency, has bagged the biggest IPO account in Indian corporate history — the disinvestment of Government's stake in Oil and Natural Gas Corporation. In addition to ONGC, it has also bagged the Dredging Corporation of India's (DCI) `offer for sale' process.

The mandate for both the offer for sale issues includes advertising across all media, public relations management and extensive on-ground activities including road shows and conferences for the IPOs in India and abroad.

Commenting on this development, Mr Vivek Suchanti, Managing Director, Concept Communication, said, "We are extremely pleased to get these accounts, as it underlines our ability to successfully manage large IPOs. Book-building issues require intensive promotion during a very small window period and we have specialised skills for those. Our performance in the Maruti IPO has been appreciated and these assignments reaffirm the confidence of our clients."

ONGC's public issue is for the Government's 10 per cent stake. The 14.2-crore equity shares will be offered in lots of 10 to attract retail investors, for whom 25 per cent of the offer size has been reserved. The offer for sale is approximately Rs 10,500 crore, which makes it the biggest in the capital market history.

The DCI offer will constitute 20 per cent of the fully diluted post-offer paid-up capital of the company. The offer is being made through the book-building process; 50 per cent of the offer will be offered on discretionary basis to qualified institutional buyers.

The first Government disinvestment in Maruti Udyog Ltd has set many records including the highest number of applications — over three lakh with bids aggregating over Rs 10,000 crore. The issue was handled by Concept Communication.

The company will leverage its knowledge of marketing financial products and couple it with its extensive network of branches.

More Stories on : Advertising | Petroleum | Disinvestment

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